Which state is better for your US LLC? We break down filing fees, taxes, privacy, and annual requirements so you can decide with confidence.
All costs and requirements for a LLC in 2026.
| Criteria | 🏛️ Delaware | 🦞 Massachusetts |
|---|---|---|
| Filing Fee | $90 ✓ Winner | $500 |
| Annual Fee | $50/yr ✓ Winner | $500/yr |
| State Income Tax | No (non-residents) | Yes (5% flat) |
| Privacy Level | Moderate | Low ✓ Winner |
| Processing Time | 1–5 days | 3–7 days |
| Franchise Tax | Yes (min $50/yr) | Yes (min $456/yr) |
| Best For | Startups seeking VC, C-Corps | Biotech/pharma, VC-backed deep tech |
The Startup Capital of the World
Biotech & Deep Tech Capital
Answer 5 questions about your business and get a personalized recommendation — free.
Get My Recommendation →It depends on your business type and goals. Delaware is better for startups seeking vc, while Massachusetts is preferred for biotech/pharma. Use the AI State Selector for a personalized recommendation.
Yes — both states allow non-US residents to form a LLC remotely. You'll need to hire a registered agent and obtain an EIN (Employer Identification Number) from the IRS.
Delaware: 1–5 days. Massachusetts: 3–7 days. Expedited processing is often available for an additional fee.
State taxes generally apply based on where business activity occurs ("nexus"), not where you formed. If you have no employees, office, or customers in the formation state, you typically won't owe state income taxes there. Consult a CPA for your specific situation.
From formation to ongoing compliance, banking, and legal docs.